Corona and Modelo importer lowers forecast due to declining beer sales

Constellation Brands lowered its outlook for its current fiscal year as consumer demand for beer weakened, particularly for high-end beer purchases, amid a “challenging” economic climate.

Constellation, which is the U.S. importer of Corona and Modelo, revised its net sales forecast for beer downward to a decline of 2% to 4%, after its prior outlook showed growth being flat to positive in the 0% to 3% range. It cited incremental macroeconomic headwinds affecting consumer demand as the key driver of the change.

The company’s operating income for beer was also revised down to a decline of 7% to 9% when its prior outlook showed gains in the 0% to 2% range. The impact of lower volumes, additional tariffs and operating deleveraging were cited as driving the shift.

“We continue to navigate a challenging macroeconomic environment that has dampened consumer demand and led to more volatile consumer purchasing behavior since our first quarter of fiscal 2026,” said Constellation Brands CEO Bill Newlands. 

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Constellation Brands said sales of beers like Corona and Modelo have slumped, causing it to cut its outlook. (Kevin Carter/Getty Images / Getty Images)

“Over the last several months, high-end beer buy rates decelerated sequentially, as both trip frequency and spend per trip declined,” Newlands said. 

“Notably, high-end beer buy rate declines for Hispanic consumers were more pronounced than general market declines, which has an outsized impact on our beer business compared to the broader beer category,” he added.

Bump Williams, CEO of Bump Williams Consulting, told FOX Business that the main reasons behind the decline in beer consumption have been the increase in health concerns about the impact of drinking, fewer social gatherings at public venues where beer is sold, as well as consumers reaching the legal drinking age who are more interested in organic, natural products like cannabis and health drinks.

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Modelo Especial beers are among the key offerings in Constellation’s portfolio. (Gabby Jones/Bloomberg via Getty Images / Getty Images)

“All beer brands are suffering from these distractions, but the biggest volume/share decliners are the older, legacy brands like Bud, Miller, and Coors (Coors Banquet is an exception) that have the most volume to lose,” Williams said. “Beer brands with flavor (Twisted Tea, Mike’s Hard, Smirnoff Ice), healthier attributes (Michelob Ultra, EIGHT, Yuengling Flight) and non-alcoholic brands (Michelob Ultra ZERO, Heineken 0.0 and Athletic’s portfolio) are finding ways to win.”

Williams said…